The Situation
AssetMaster* had great potential, but stagnant profits. The company needed a clear corporate vision to maximize value for its shareholders.
AssetMaster is an integrated global wealth management company that operates several distinct businesses, including an asset management operation and a private banking business.
Recently, the asset management unit has had declining profitability. At the same time, private banking, though highly profitable, was ignoring untapped potential.
AssetMaster's management believed that a few critical factors were causing these performance problems:
- Untapped synergies between business units
- Underpenetration of core markets
- No clear private banking strategy
- Dysfunctional and poorly defined organization
AssetMaster asked the Bain team to help improve its profits and fix underperforming asset growth by reviewing the company's integrated business strategy.
Our Approach
Bain conducted a comprehensive review of AssetMaster's businesses and developed an implementation plan for a new strategy.
Our Recommendations
By selling the asset management business, AssetMaster could focus its resources on developing the full potential of the private banking unit - and maximizing shareholder value.
The Results
AssetMaster's shareholders gained significant value through the new strategy: the company outpaced the market index by $750 million in six months.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.